Rep. Sheryl Allen, R-Bountiful, has been watching what is commonly called the "Antigua case" in her role as chairwoman of the Committee on Economic Development and International Trade for the National Conference of State Legislators. She believes it has "very serious" ramifications not only for Utah's historic battle to keep gaming out but for the state to determine its own destiny.

"This is a states' rights issue, not a moral one," Allen said. "I am a states' rights advocate, and I am really concerned about ability of states to regulate things. It has far-reaching implications."

Allen agrees with the legal assessment that if the WTO appeal goes against the United States, it could ultimately result in full-blown gambling in Utah, although that is a worst-case scenario and probably down the road.

A negative ruling could mean that foreign companies would be entitled under international treaty to start gambling businesses in the United States. A refusal by the United States or any state could result in trade sanctions against the nation generally or against any state that ignored the WTO ruling, legal experts say.

To avoid sanctions, the federal government could be forced to supersede state law.

Rep. Chris Cannon, R-Utah, isn't too worried about that happening, calling the threat of sanctions a "toothless tiger." Any sanctions would likely involve higher tariffs on U.S. products, which is something that other nations, particularly those in the Caribbean, are not willing to do.

While trade sanctions by Antigua would not hurt the Utah or national economy, it is probable that many other nations, some of them economically powerful, would join in on the sanctions. The two countries with the biggest gambling investments are Great Britain and Australia — critical U.S. trade partners.

So far, the WTO challenge relates only to Internet gambling, and no international gaming company has filed a challenge against U.S. trade policy to open a bricks-and-mortar casino in Utah or anywhere else it is not allowed.

But Allen believes it is only a matter of time and that for every creative move the state makes to block it, attorneys will try to figure out ways around it.

The core issue, she said, is not gambling but trade agreements and the failure of U.S. trade negotiators to recognize individual state rights and values.

"In the future, trade negotiations might not only force us to accept gambling but take away our regulatory authority over utilities and, on the extreme, take away the authority of local governments over zoning," she said.

That is why it is so critical, she said, that trade negotiators involve state lawmakers and attorneys general in international trade decisions.

And that's exactly why the United States is in the Internet gaming pickle with Antigua.